What is Risk Assessment?

Risk is a very important aspect of any project or undertaking. Risk cannot be completely eliminated, but it can be reduced, therefore risk assessment becomes necessary. Risk Assessment is the process of evaluating, identifying and estimating the level of risk that is involved in a projected activity or undertaking. Risk assessment is a careful scrutiny of what, in the workplace, could cause harm to people, so that employer can take enough precautions to prevent them.

For maintaining the health and safety of business and people one must control the risk involved in it by doing a risk assessment. In simpler terms, it is the process of identifying potential hazards and evaluating its effect. Risk assessment can be of two types:

Quantitative - Quantitative risk assessment measures the risk in terms of quantity rather than the quality that is, magnitude of the potential loss and the probability of that loss.

Qualitative – Qualitative risk assessment is the measurement of risk in terms of its effect on the quality that is, deteriorating the quality of living or the environment.

Why is Risk Assessment Important?

Risk assessment becomes important for following reasons:

It helps in identifying potential risk before it occurs so that preventive measure can be planned.

It helps in reducing the level of risk by taking precautions and control measures.

Risk assessment also provides a safe working environment to its employees.

Risk assessment is also helpful in averting major financial loss to the organization due to disruptions in its operations.

It helps in protecting the environment and interest of all the stakeholders.

Legal compliance.

Process of Risk Assessment

There are five steps to the process of risk assessment:

Identifying the Potential Hazard

The first and foremost step in the process of risk assessment is to find out the potential hazard which may cause harm to people, product, and the environment. Hazards can be physical, mental, chemical and biological:

Chemical - Skin irritants, carcinogens or respiratory sensitizers that have an adverse effect on a worker's health as a result of direct contact with or exposure to the chemical.

Biological - Hazards that come from working with people, animals or infectious plant material. Examples: blood or other bodily fluids, bacteria and viruses, insect bites, animal and bird droppings etc.

To identify these hazards the entire operating process is studied. We are required to systematically examine our workplace and work activities to find out the workplace-generated hazards. To identify hazards, employers can also check the records of accidents, ill-health, insurance claims and manufacturer’s instructions or data sheets. Man, machine and materials used in the operation are classified as per their risk profile, i.e. Low risk, Medium risk and High risk.

Analysis of Risk (Check Who may be Harmed and How)

In this process, each Identified risk is analyzed based on its classification and impact. Assessment is done to find who is at risk due to a hazard which would help to identify the best way of controlling the risk. In assessing the risk, we should estimate how likely it is that hazard will cause harm, how serious the harm is and how often and how many workers are exposed to the risk.

Workers who are exposed to moving machinery/equipment would have a higher risk of physical hazard.

Employees who are working in the chemical zone would have a higher risk of health hazard.

Employees who are working on projects or maintenance jobs would be more exposed to physical hazard such as height, scaffolding, tripping etc.

Employees who are working with patients, animals, plants and dealing with a large number of people are exposed to biological hazards.

Employees who are working in very stressful environment, paid low wages etc. are exposed to the mental hazards.

All workers have particular requirements, for example, new and young workers, migrant workers, new or expectant mothers, people with disabilities, temporary workers, contractors, night workers, shift workers homeworkers and lone workers.

Action Plan

After identifying the hazard and analyzing it, we must take action to prevent the hazard. All workplaces have some safety measures but, the risk assessment will tell whether they are adequate.

One can produce a 'model' risk assessment reflecting the common hazards and risks associated with different activities. Only evaluating risk is not enough it is important to take action like:

Prominently display of safety rules in hazardous areas and equipment’s.

Covering of moving parts of the machinery/equipment.

Restrictive access to the hazardous area and equipment’s.

Organizing work to reduce exposure to the hazard.

Providing welfare facilities such as first aid and washing facilities, involving workers and consulting workers etc.

Documentation of Findings

After assessing the risk and taking action it becomes necessary to record it for future references. All identified risks and process for handling it is documented and displayed in hazardous areas and machinery. In future, as and when any incidents occurs it must be properly documented for further review and modification in action plans.

One must record significant findings - the hazards, how people might be harmed by it and what steps have been taken to control the risks. The record should include details of any hazards noted in the risk assessment, and action that is taken to reduce or eliminate risk. Thus, the record will provide a proof that the assessment was carried out, and it can be used as the basis for later review of working practices. Documentation can become a key component when it comes to dealing with legal problems. An easy way to record findings is to use a risk assessment template.

Review and Update

Risk assessment must be reviewed and updated on a timely basis to ensure whether all policies and rules are followed and new working practices are taken into account with a change in time.

Such changes may include changes in work processes, organizational structure, equipment or substances used, technical knowledge etc. Risk assessment if reviewed can serve two purposes a backward view of how the action plan was and a forward view to ensuring that we take proper precautions to prevent hazards. A copy of the statement must be kept available for the purpose of inspection.

Risk Assessment Matrix

A Risk Assessment Matrix is a tool that helps in identifying the likelihood or probability of the risk and the severity of the risk if occurred. Risk assessment matrix is one of the most important tools for risk evaluation. Risk assessment matrix is commonly used to determine the size of a risk and whether or not the risk is sufficiently controlled. Risk assessment matrix is a table where rows show the risks and columns show their likelihood (probability) of occurrence and their impact.